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Compliance & Risk

Fincantieri predicts strong growth despite ding to US warship business

The US Navy has cancelled the Constellation frigate program after two ships were half-built, directly impacting Fincantieri's US shipyard operations. This represents a significant contract termination affecting a major naval shipbuilding program. While Fincantieri is offsetting losses with international orders and European defense spending increases, US defense contractors and shipbuilders should note this major program cancellation and its implications for naval procurement strategy.

Cabrillo Club·February 16, 2026
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Compliance & Risk

CBP ramps up surveillance tech without much-needed IT personnel, GAO says

A GAO report reveals that CBP has significantly increased surveillance technology deployments along the northern border while facing critical IT personnel shortages, with staffing rates below target for five years. DHS has agreed to develop recruitment and retention strategies for Law Enforcement Information Systems Specialists to address the gap. This signals potential upcoming contracting opportunities for IT support services, managed services, and workforce augmentation to support CBP's expanding surveillance technology infrastructure.

Cabrillo Club·February 16, 2026
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Compliance & Risk

Pentagon official blesses Europe’s push to spend defense money at home

The Pentagon has announced a significant policy shift regarding European defense procurement, with Under Secretary Elbridge Colby stating the U.S. will be 'pragmatic' about European allies buying defense equipment domestically rather than from American contractors. This represents a reversal of 30 years of U.S. policy that opposed European protectionist procurement practices, and could substantially impact U.S. defense contractors' access to European markets, which currently account for 35% of U.S. arms exports. The policy change aligns with the broader U.S. strategy to shift defense burden-sharing responsibilities to European NATO allies while the U.S. focuses on other strategic priorities.

Cabrillo Club·February 16, 2026
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Compliance & Risk

Senate takes up push to modernize environmental permitting process

The bipartisan ePermit Act has been introduced in the Senate to modernize federal environmental permitting processes through standardized digital systems and project management tools. The companion bill has already passed the House. This legislation would impact government contractors involved in infrastructure, energy, and construction projects by potentially streamlining environmental review timelines and requiring digital, cloud-based documentation systems for permit applications.

Cabrillo Club·February 16, 2026
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Compliance & Risk

2027 defense budget could double 2026 ship requests, US Navy secretary says

The Navy Secretary announced that the proposed FY2027 defense budget could double shipbuilding procurement from 17 ships in FY2026 to at least 34 ships, with significant focus on auxiliary and support vessels. This represents a major expansion of naval shipbuilding opportunities under President Trump's proposed $1.5 trillion defense budget, including the new Golden Fleet initiative with Trump-class battleships. Government contractors in the maritime and shipbuilding sectors should prepare for substantially increased procurement opportunities, particularly for easier-to-build auxiliary vessels designed to rebuild the maritime industrial base.

Cabrillo Club·February 16, 2026
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Compliance & Risk

US Army to debut FPV Bumblebee V2 drone interceptor next month

The Pentagon awarded a $5.2 million contract to Perennial Autonomy on January 30 for the Bumblebee V2 drone interceptor system, with deliveries beginning in March 2025. The system will be assessed by the U.S. Army's Global Response Force and represents a rapid acquisition of NDAA-compliant counter-drone technology. This contract demonstrates accelerated procurement pathways for emerging counter-UAS capabilities and emphasizes compliance with NDAA restrictions on foreign components.

Cabrillo Club·February 15, 2026